Transparency display problem in Photoshop​(Why it Matters)

There is a serious problem with how Photoshop displays transparency when there is no background image or layer. The problem is visible here, but most people don't notice it thanks to the checkered background:

If you change your transparency settings to make both squares of the checkerboard pattern white you'll see a major change in how opacity is displayed when the background layer is hidden:

Explanation:In "Layer 9" I've drawn a line with opacity ranging from about 100% black to 0% opacity."Layer 5" is a solid white fill. When I hide "Layer 5" you see a total change in how the transparency is drawn!

This problem has been in Photoshop for years now, but there is no possible reason this is intentional. It makes editing Smart Objects with transparency unnecessarily difficult because you have to add a temporary background layer in order to see opacity correctly!

Photoshop should be consistent in its display of opacity.

Source Of The Problem & How To Fix It!

The problem is happening because the setting for "Blend RGB Colors Using Gamma: ___" is respected for blending opaque layers but it is ignored when drawing over a transparent background!

Here I'm toggling the "Blend RGB..." setting with the opacity layer on top of a solid white layer. See how it the opacity blend changes when I toggle it?

Now look what happens when I toggle the setting when the opacity test is drawn over a transparent background. No change!!!